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East Alabama August home sales up 12% from last year

By ACRE Research

September 14, 2019

The Phenix City-area median home sales price in August was $182,000, an increase of 8% from one year ago. (iStock)

Sales: According to the East Alabama Board of Realtors, Phenix City-area residential sales totaled 148 units during August, up 12.1% from 132 sales in the same month a year earlier. August sales were up 37% compared to 108 sales in July. Results were 43.4% above the five-year August average of 103 sales. Two more resources to review: Quarterly Report and the Annual Report.

Inventory: Homes listed for sale in the Phenix City area during August totaled 377 units, a decrease of 22.3% from 485 units one year ago and an increase of 1.9% from July 2019’s 370 units. August months of supply totaled 2.5 months, a decrease of 30.7% from August 2018. August’s months of supply decreased 25.6% from July’s 3.4 months of supply.

Pricing: The Phenix City median sales price in August was $182,000, an increase of 8% from one year ago and an increase of 1.2% from the prior month. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during August was 91 days, a decrease of 20.9% from August 2018 and a decrease of 1.1% from 92 days in July.

Forecast: August sales were 37 units, or 33.3%, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 111 sales for the month and actual sales were 148 units. ACRE forecast a total of 778 transactions in the Phenix City area year-to-date, while there have been 954 transactions through August.

ACRE’s statewide perspective: After a slight decline in June, statewide residential sales rebounded in July, increasing 10.2% from 5,722 closed transactions in July 2018 to 6,307 in July 2019. Year-to-date, sales are up 3.1% from 2018, a record year for residential sales. Home price appreciation in the state continued to climb as the median sales price in July increased 4.6% year-over-year from $169,178 to $176,926. The statewide median sales price is up 4.2% year-to-date. While nationwide inventory levels (active listings) decreased 1.6% year-over-year, Alabama’s residential listings continue to tighten, decreasing 9.9% from one year ago. Low inventory levels were a significant factor contributing to rising sales prices throughout 2018 and in the summer buying season of 2019. With low inventory levels, it is surprising to see homes selling at a slightly slower pace than one year ago. Homes selling in Alabama during July spent an average of 89 days on the market, an increase of three days from July 2018.

NAR’s national perspective: After a 7.4% drop in June, existing home sales strengthened in July. Nationwide residential sales increased 3.3% from approximately 523,000 closed transactions one year ago to 540,000 currently. The nationwide median existing-home price increased 4.3% in July, marking 89 consecutive months of year-over-year gains. Lawrence Yun, chief economist for the National Association of Realtors, said, “Falling mortgage rates are improving housing affordability and nudging buyers into the market.” However, he added that the supply of affordable housing is low across the nation. “The shortage of lower-priced homes has markedly pushed up home prices.”